Florida workers in many trades and professions rely heavily on tips for their income. While people might first think of restaurants and other food establishments when they think about tips, hairdressers, people who transport passengers, and many workers in the hospitality industry also rely on tips.
It is important for employers in the area to make sure that they have a program for handling tips according to the wage and hour laws that apply.
In Florida, employers are entitled to pay tipped employees an amount lower than the state’s minimum wage.
The idea is that the employee will at least make up the difference in tips. In 2022, an employer can pay tipped employees $6.98 an hour and credit that employee for $3.02 an hour in tips, leaving the employee with $10.00 an hour total pay.
Employers should make sure tips get handled correctly
There are limits on how an employer can account for an employee’s tips.
Generally speaking, those who receive tips get to keep them. An employer cannot require an employee to give up a share of their tips back to their employer.
On the other hand, an employer can only apply the tip credit to tips an employee actually made. On the most basic level, this means if an employee does not make enough to cover the $3.02 an hour tip credit, the employer must make it up.
Employers are allowed to require employees to pool their tips with other employees who customarily get tipped.
Orlando area employers like restaurants, beauty salons and the like are allowed to pay tipped employees less than the normal minimum wage. However, they will need to be sure that they have properly set up wage and hour payments to their employees.